Some of the largest transactions include AXA Investment Management's £391m purchase of the Hercules portfolio and Boreal's £82m acquisition at Nucleas at Park Royal. See overleaf for more key deals.
Global institutional and private equity investors continue to reallocate capital to the sector attracted by strong rental growth forecasts. Investment from overseas investors accounted for 52% of deployment in the opening quarter of the year, with REITS & PropCos accounting for 30.8% for the same period.
While there is unlikely to be a let-up in investor demand, volumes may be challenged by increasing scarcity of stock. With continued yield compression some investors may be tempted to cash in, though others with be likely hold onto their assets, reaping the benefit of rental growth.